The attempt to bridge the GAP

Long afternoon of budget negotiations yields plan to raise sales tax and some income taxes

RALEIGH (Winston-Salem Journal) - State legislators debated all day yesterday and late into the night over various tax increases that Democrats say are necessary to fix a state budget crisis.

The Democrats' proposal would increase the statewide sales tax and broaden it to apply to more types of purchases. It would also increase the income tax on the highest earners. All together, the changes would raise nearly $800 million of new revenue in the first year.

Democratic leaders in the N.C. House say that the money is needed to help close a budget hole of more than $4 billion and stave off damaging cuts to essential services in education and health care.

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